Mexico's new policy: Amazon and other foreign e-commerce platforms will impose a 16% VAT starting next year

It is learned that recently, the Mexican National Tax Service announced that from January 1, 2025, all foreign companies that sell products through e-commerce platforms will be subject to a 16% value-added tax (VAT). This measure mainly targets foreign e-commerce platforms such as Shein, Temu, and Amazon, and is expected to bring 15 billion pesos in tax revenue to the Mexican government.

The new tax policy is part of the 2025 Income Tax Law, which aims to strengthen tax supervision and ensure that large e-commerce platforms comply with tax regulations. An official from the Mexican House of Representatives expressed support for this legislative reform, emphasizing that even if the products of these e-commerce platforms are not sold through local Mexican companies, as long as the products are stored in Mexico, they still need to pay value-added tax.

Previously, e-commerce platforms such as Shein enjoyed a tax-free policy, exempting value-added tax for each purchase of goods below $50, but this policy will no longer apply. According to the Mexican economic plan for 2025, the government is expected to receive about 8 trillion pesos in revenue, of which taxes will account for the majority, and tax revenue is expected to increase by 2.6% year-on-year.

Author✎ Summer/
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